Key Highlights

  • Non-GAAP EPS was $0.53 versus $0.50, and GAAP EPS was $0.50 versus $0.45.
  • 2026 non-GAAP EPS guidance was raised to $1.90 to $1.92, with new 2027 guidance of $2.07 to $2.09.
  • The 10-year capital plan rose $4.0 billion to $70.7 billion, with rate base growth above 14% a year through 2030.
  • Nine-month non-GAAP EPS was $1.49 and GAAP EPS was $1.34.
  • Common equity needs through 2035 are about $5.6 billion, including about $1.1 billion of forward sales settling by February 2027.

CenterPoint Energy Earnings: Did a $0.53 Quarter Justify a Higher Outlook?

CenterPoint Energy (NYSE:CNP) reported third-quarter results on Tuesday, October 27, with non-GAAP EPS of $0.53 against $0.50 a year earlier. As screened, the estimate was $0.50 and the surprise 6.24%. GAAP net income was $331 million, or $0.50 per diluted share, versus $293 million, or $0.45.

Management raised 2026 non-GAAP EPS guidance to $1.90 to $1.92, about 9% growth at the midpoint over 2025's $1.76. It introduced 2027 guidance of $2.07 to $2.09, also about 9% growth at the midpoint, and expects growth at the mid-to-high end of 7% to 9% a year through 2030.

Earnings Bridge: What Added and Subtracted Against Last Year?

Non-GAAP net income was $354 million versus $328 million. Growth and rate recovery added $0.09 per share and weather and usage added $0.03, while operations and maintenance expense was flat. Higher financing costs from new debt and equity dilution subtracted $0.04, and other items, mainly the absence of last year's one-time tax benefit, subtracted $0.05.

Year to date, operations and maintenance expense is down 1%, and the company targets annual controllable reductions of 1% to 2%. Electric metered customers grew 2% to 3,055,290 and gas customers grew 1% to 4,027,988, with electric throughput up 1%.

The company also completed the sale of its Ohio natural gas business on October 1, with initial proceeds of $1.4 billion.

Capital Plan and ERCOT Load: What Does $70.7 Billion Require?

The 2026 to 2030 plan is about $38.7 billion, up from $34.2 billion, including about $4.0 billion of new transmission projects and $1.5 billion of accelerated work. Estimated 2026 year-end rate base is about $31.9 billion, of which Texas electric is $18.5 billion.

Funding is the counterweight. Common equity needs through 2035 are about $5.6 billion, up $1.6 billion, with about $4 billion planned through 2030. FFO to debt was 13.7% by one rating agency's method and 14.4% by another's, and the company targets 100 to 150 basis points of cushion above downgrade thresholds.

Expected large-load energization in the ERCOT batch process is about 3 gigawatts in 2027 rising to 12 gigawatts in 2030, against a current Houston Electric system peak of 21 gigawatts. The slides caution that actual demand may be lower than the amounts studied and that approval timing could delay energization.

Key Dates: What Should Investors Track After the Guidance Raise?

ERCOT is expected to decide base-load amounts in December 2026 and studied-load allocations in April 2027, and about $1.1 billion of forward equity sales settle by February 2027. The company targets 6% annual dividend growth, and maturities are about $626 million in 2027 and $2.96 billion in 2028. The Ohio seller's note carries a 6.5% rate.